Catholic Diocese of Spokane, Washington

The Bishop Writes

(From the Sept. 29, 2005 edition of the Inland Register)

Earlier this month, you received in your parishes information from me about our progress with the diocese’s Chapter 11 Reorganization proceedings. I would like to offer some follow-up to that letter.

There has been a certain amount of “Monday morning quarterbacking” going on, questioning whether it was wise for the diocese to enter into the Chapter 11 proceedings at all. Some have asked whether this couldn’t have been handled in a better way. I have heard, indirectly, that “the bishop has been sold a bill of goods.”

I very much disagree with those types of comments. Here is why.

Late last year, before the diocese filed for Chapter 11, the amount of money claimed for only a portion of the numerous abuse claims against the diocese was far beyond our means, particularly given the hard-line position taken by the majority of our insurance carriers. The diocese has never been rich, and I am proud to say, we have used our monies for programs and institutions which serve not only members of our diocesan family, but others as well. What we have been given, we have used for ministry.

In early December, a court case was looming which could have resulted in very large damage awards. Those potential awards would have exhausted our resources, with just a few cases settled or tried. The risk for the future was huge. After the assistance of significant consultation, I decided it was a risk I was not willing to take.

Therefore, early last December, we declared Chapter 11 bankruptcy. I have stated our reason for doing so from the beginning. To the best of our ability, in a just manner, we sought to meet the needs of all the wounded, not just those involved with the first cases to be settled or tried to judgment. Those first cases might well have left far less for claims that followed. I want to assure the wounded that we desire justice and that we want to be of assistance in healing and reconciliation. I apologize once more for the harm they have experienced.

The second reason for filing was to preserve, to the best of our ability, our mission as Church. The Catholic Church in Eastern Washington is a great gift to our diocesan family. Preserving our mission and ministry is a matter of good stewardship as we look to the future.

  A key part and goal of the Chapter 11 proceedings will be to establish a claim filing and resolution process which will treat the victims in a fair and just manner, and will establish finality for the diocese and the parishes.

Without Chapter 11, we faced huge risk. I cannot stress that enough. The results of court judgments or settlements for a few would have quickly left us insolvent as a diocese, with the need to resolve many other abuse claims. Those initial state court judgments would have depleted the available assets of the diocese and resulted in judgment liens being filed against the parishes and schools in the diocese. At that point, we would not have had the financial resources to enter into Chapter 11.

Declaring Chapter 11 is not inexpensive. Neither are the ramifications of that filing. Putting all the cases together, with a hope of a just resolution and the protection of the mission of the diocese, can provide our best hope of emerging from this tragic and sad situation with the two goals fulfilled: justice for the wounded, and the Church’s continued ministry.

Some have expressed to me resentment in regard to the expense of attorneys – why does this process have to be so expensive? In the long run, the amount we pay for attorneys will be relatively small compared to the total compensation to victims. Bear in mind that from a legal point of view, this whole matter is extremely complex. It demands a great deal of specialized legal skill. We have been in consultation constantly with the other dioceses involved in Chapter 11, and others as well, concerning the complexity of our situation. As we move ahead, we have never considered our decision a “roll of the dice,” some sort of gamble. Rather, it is a reasoned, prudent decision made under very difficult circumstances.

We are certainly all in this together. The recent decision of the bankruptcy court regarding the property of the estate makes that reality very clear. That decision challenges the legal status of the non-profit and community nature of the Church. If we were really a wealthy diocese, this issue would never have surfaced. This unique situation calls for us all to participate in a just, reasonable and realistic resolution: A just resolution for the victims that is reasonable for the parishes, elementary schools and institutions today, and realistic for the future mission of the Church in Eastern Washington.

The final outcome will have an impact on all of us. We begin to feel that impact already. Together as a diocesan family, we have to take responsibility for compensating the victims and for continuing the life and mission of the Church. “Take up your cross each day and follow me” are not idle words of the Lord. In a letter to the priests of the diocese a few weeks ago, I told them how this situation has made the Scriptures come alive for me. Sacrifice in the future will be demanded from all of us, and things will not be the same.

What is God saying to us at this moment?

I think he is asking us to be people of faith, a people of community, who have hope and gratitude in our hearts for many rich blessings. God calls us constantly to build up the Church in commitment and joy. God calls us to be loving and forgiving; to be, as St. Paul reminds us, “ambassadors for Christ, God as it were appealing through us.”

I ask your prayers for a quick and just resolution to this challenge set before us.

Blessings and peace to all.